Agenda Thursday, April 18, 2019 at 2:30 PM Wharfinger Building Bay Room 1 Marina Way Eureka, CA 95501

Transcription

1 Page 1 of 24 HUMBOLDT WASTE MANAGEMENT AUTHORITY EXECUTIVE ADVISORY COMMITTEE Kyle Knopp, City of Rio Dell Greg Sparks, City of Eureka Mandy Mager, City of Blue Lake Karen Diemer, City of Arcata-Chair Jay Parrish, City of Ferndale Amy Nilsen, CAO, County of Humboldt-Vice Chair Agenda Thursday, at 2:30 PM Wharfinger Building Bay Room 1 Marina Way Eureka, CA Copies Available: Copies of the agenda materials are available electronically via the internet at through individual HWMA member agencies or by calling HWMA at There may be a charge for copies. Accessibility: Accommodations and access to HWMA meetings for people with special needs must be requested in advance of the meeting at (The HWMA Office is ADA accessible.) This agenda and other materials are available in alternative formats upon request. 1. Call to Order and Roll Call 2. Oral and Written Communications This time is provided for people to address the Executive Committee or to submit written communications concerning matters not on this agenda. Executive Committee members may respond to statements, but any request that requires action will be referred to staff for review. Reasonable time limits may be imposed on both the total amount of time allocated for this item, and on the time permitted to each individual speaker. Such time allotment or portion thereof shall not be transferred to other speakers. 3. Consent Calendar a. Approve Minutes from Executive Committee of April 19, Select Chair and Vice Chair for FY19/20 5. Receive and Discuss Draft Fiscal Year Budget; Recommendation for Final Budget to the HWMA Board of Directors 6. Adjourn

2 Page 2 of 24

3 Page 3 of 24 HUMBOLDT WASTE MANAGEMENT AUTHORITY EXECUTIVE COMMITTEE Kyle Knopp, City of Rio Dell Greg Sparks, City of Eureka Mandy Mager,City of Blue Lake Karen Diemer, City of Arcata-Chair Jay Parrish, City of Ferndale Amy Nilsen CAO, County of Humboldt-Vice Chair Meeting Minutes Thursday, April 19, :30 PM Wharfinger Building Bay Room 1 Marina Way Eureka, CA Present: Absent: HWMA Staff: Mandy Mager, Kyle Knopp, Karen Diemer, Jay Parrish. Greg Sparks and Amy Nilsen Jill Duffy, Tyler Egerer 1. Call to Order and Roll Call at 2:30 PM 2. Oral and Written Communications Chairman Diemer Opened the floor to public comment regarding Items not on the Agenda. No public comment was received. Chairman Diemer Closed the floor to public comment. 3. Review and Approve Consent Calendar. Motion by Pay Parrish/Second by Kyle Knopp to approve. No Public Comment was received. Motion passed unanimously. 4. Select Chair and Vice Chair for FY Motion by Jay Parrish/Second by Kyle Knopp to retain Karen Diemer as Chair, and Amy Nilsen as Vice Chair. No public comment was received. Motion passed unanimously. 5. Receive and Discuss Draft Fiscal Year Budget. Draft budget was presented to the Executive Advisory Committee. Motion to receive and forward to the HWMA Board of Directors, as presented, was made by Kyle Knopp/Second by Jay Parrish. No public comment was received. Motion passed unanimously. 6. Adjourned at 3:00 PM.

4 Page 4 of 24

5 Page 5 of 24 HUMBOLDT WASTE MANAGEMENT AUTHORITY Staff Report DATE: April 12, 2019 For Meeting Of: FROM: Jill Duffy, Executive Director Tyler Egerer, Administrative Services Manager SUBJECT: Item 5) Review and Provide Recommendation on Draft Fiscal Year Budget. RECOMMENDED ACTION: Voice vote. Provide Recommendation to the HWMA Board of Directors DISCUSSION: The draft budget for Fiscal Year is presented for discussion and a recommendation to the HWMA Board of Directors for their consideration at a special meeting scheduled for Wednesday, April 24 th at 5:30 PM. This draft budget establishes the goals and priorities to enable management and operation of the HWMA s activities during the fiscal year July 1, 2019 through June 30, As presented, this draft budget marks the fourth consecutive year of no increase to the Waste Management Fee ( Tip Fee ), or 0.0%. This report presents a balanced draft budget, and continues to fully fund reserves, with a projected increase of $0.00. Revenues are projected at $14,514,079 and total projected expenditures are $14,514,079. Staff is seeking direction from the Board related to policy direction and prioritization of activities that will enable staff to present a final balanced budget at the regular May meeting. This staff report contains six areas of discussion, including: 1) FY Operating Budget Assumptions; and 2) Proposed Capital Expenditures for Draft FY ; 3) Waste Management Fee Adjustments; 4) Employee Compensation; 5) Reserve Funds; and 6) Other Board Directives for Budget Finalization. 1. FY Operating Budget Assumptions HWMA is dependent primarily upon collection of Waste Collection Fees to fund Authority operations, programs and activities. The following assumptions were incorporated into the Draft FY 2019/20 Budget. A minor formatting change to the budget structure to retitle the Household Hazardous Waste column to Environmental Health & Safety also includes the related compliance and safety activities into this division. 1

6 Page 6 of 24 Revenue Assumptions: a) There is no proposed increase to FY Waste Collection Fees ( Tip Fees ) for discussion purposes. Minor internal budget adjustments to proposed line items are proposed. Details for discussion are contained in Section 3 of this staff report. b) Overall solid waste disposed is projected at 75,000 tons annually, an increase of 3,000 tons. Tonnage received by category: a. 39,000 tons received franchised hauler waste at the Hawthorne Street Transfer Station. This represents a projected decrease of 4,000 tons due to County franchise material being handled at the newly completed transfer station building in McKinleyville. b. 20,000 tons self-haul waste to the Hawthorne Street Transfer Station. This is an expected increase of 5,000 tons based on current self-haul activities. c. 11,000 tons franchise waste delivered to satellite facilities (6,000 tons allocated to Humboldt Sanitation and 5,000 tons to Eel River Disposal). This is an overall increase of 5,500 tons, due primarily to the new McKinleyville transfer station building and improved tonnage reporting from the Fortuna transfer station. d. 5,000 tons of miscellaneous contractor waste self-hauled directly to out-of-area landfill(s). This is a projected decrease of about 4,500 tons of waste that appears to be sent to transfer stations instead of being self-hauled to out-of-area landfills. c) Grant funded projects shall be funded only by grant monies rewarded except in such instances where fund-matching is required and has been approved by the Board as part of the grant process. Expenditure Assumptions: a) Solid waste transportation hauling and landfill disposal costs were adjusted for the Consumer Price Index by an estimated increase of 2.00%, per the respective agreements. b) For discussion purposes, preliminary payroll expenses are budgeted with an increase of 3.6% COLA for discussion and direction purposes. The final draft will be adjusted to reflect Board direction. Discussion of this item is addressed in Section 4 of this report. c) Medical insurance premiums will be adjusted however, information will not be available until closer to May. d) Implementation of FY projects identified in the approved 2017 Capital Improvement Plan. Refer to Section 6 for details. e) The Master Facility Stormwater Project was approved by the Board at the September 2018 meeting, and the proposed identified improvements are included in Asset Improvements, Non-CIP for the Transfer Station (Line 129). 2

7 Page 7 of 24 f) Increase to the advertising and consulting lines for service marketing items (brochures/magnets) and expand on-going educational/classroom trainings. Expenses related to consulting work by 4 R Planet have been reclassified from the advertising budget in the Programs division to Engineering and Consulting expenses (Line 86), and this line item has been increased by $10,000 over the previous year. g) Increase to the engineering & consulting lines for landfill and transfer station consultation services, includes and increases educational outreach activities, proposed project to update the HWMA s 2011 Waste Characterization Study in order to compare material composition changes and identify additional diversion opportunities for member agency jurisdictions, and a salary and compensation study (Line 90). 2. Proposed Capital Expenditures & Improvements Annual Capital Expenditures and Improvement expenditures are related to 1) annual debt service principal and interest payments; and 2) proposed capital expenditures related to implementation of Non-Capital Improvement Projects. Annual Debt Service The Authority successfully restructured its bond debt in May 2015, resulting in payment decreases of principle and interest related to the annual debt service. For FY , the Authority will be obligated to pay $854,037 structured in two payment installments. The total remaining debt of $1,622,163 is scheduled to be paid off paid by November of (Line 130 &131). Capital Expenditures Proposed Capital Expenditures include costs associated Reserve Fund Requirements and Asset Improvements Non- CIP which totals -$44,781 (Lines 128 & 129). A small portion of the Capital Improvement Fund is being allocated to the annual portion of the budget to help fund non-cip asset improvements. The Non-CIP expenditures will fund the demolition, purchase and installation of 1) a Landfill Office Trailer the office trailer at the landfill was originally installed about 1975, is leaking and the floor is no longer structurally sound. Staff proposes to purchase a smaller replacement trailer. Also included are 2) stormwater improvements mentioned in Section 1, above; 3) a new utility vehicle for the Landfill; and 4) a replacement blower at the Landfill, as part of continuing annual equipment upkeep. 3. Waste Management Fee Adjustments The Authority annually evaluates and adjusts fees to recover the complete costs associated with providing and operating waste management facilities and programs, including any fees imposed by other governmental agencies. The Waste Management Fee ( Tip Fee is comprised of three primary components including a) Countywide Program Fees; b) Base Fees; and c) Facility Fees, as well as applicable charges on non-standard waste materials (tires, appliances, bulky items etc), green wastes and household hazardous wastes. 3

8 Page 8 of 24 The combination of adjustments provides for, maintenance of the Authority s Reserve policies, and sufficiently provides for the cost of all diversion programs. The draft budget for FY recommends minor adjustments to the Countywide Program Fees, Base Fees, and Facilities Fees, and no adjustment to the existing Waste Management Fee. The primary components of the Waste Management Fees are presented in detail in Attachment B Waste Management Fees of this report are as follows: 1. Countywide Program Fee Adjustments: The CWPF category is not proposed to be adjusted from $23.27 per ton. 2. HWMA Base Fees The Base Fee category covers costs associated with Administration, and costs to operate the Universal Waste Programs, Recycling and Cummings Road Operations. The Base Fee is not proposed to be adjusted from the $25.94/ton, however, staff is recommending that a new line item be established to reflect Environmental Health & Safety activities, with a corresponding decrease from the Administration line. 3. Facility Fees Facility Fees are not proposed to be adjusted, and will remain at $110.82/ton, which helps to offset the adjustment of the proposed above item increases. The above adjustments result in an overall increase of 0.00% to the Waste Management Fee to Self-Haul, Franchise, Satellite and Out-of-Area Self-Haul customers. Please refer to Attachment C. 4. Personnel Compensation & Related Items Employee and payroll costs are budgeted at $2,558,575 of the Authority s budget. This represents the full encumbrance costs of full staffing for 36.5 FTE for the operations at the Hawthorne Street Transfer Station seven (7) days a week, as well as the Cummings Road Landfill. Included in this figure are salaries, health benefits, taxes, pension costs and other benefits, such as employee uniform & boot allowances. Staff included the following adjustments for employee compensation and benefits within the FY budget: California Personnel Employee Retirement System (CalPERS) required increase for pension contributions of approximately 0.1% (or $24,794). CalPERS unfunded liability is projected to be $ 25,000 for FY This cost is calculated annually as part of total payroll expenses. Paying off the full unfunded pension obligation of approximately $604,000 would put an unnecessary burden on the Waste Management Tip Fees; staff recommends continuing annual payments and reviewing these costs during the FY budget discussions as the payments to the long-term debt terminate. 4

9 Page 9 of 24 Worker s compensation insurance costs is expected to decrease by $20,000. Medical premium adjustments will be presented with the Final Budget as the Authority expects to receive notice of adjustments in late April. Cost of Living Adjustments & Salary Survey Periodically, the Board considers providing employees a Cost of Living Adjustment, or COLA, Regular Cost of Living Adjustments (COLA) to base salaries help to ensure that, over time, increases will offset inflation and ensure salaries remain competitive when recruitment is necessary. Staff recommends that the Board direct a 3.6% COLA; this would result in a slight payroll increase of approximately $37,790. In 2016 the State of California approved a State Minimum Wage of $15/hour by 2022 that is tiered over a multi-year period with annual adjustments. This led to a need to examine and manage the multi-pronged effect of the mandatory base wages on the Authority s pay structure, determine an appropriate compensation for Grade 100 (skilled entry-level) positions and evaluate appropriate salaries for all positions to minimize compression issues. Staff will present the findings of the informal Salary Survey to the HWMA Board of Directors at their regular May meeting. Organizational Chart & Classification Plan This was last completed during the FY budget process, and updated in November 2018 as part of a minor mid-year reorganization. Organization Chart The Organization Chart was revised in November The Authority has 36.5 approved positions, 35.5 of which are filled. In FY one vacant Programs Analyst position was frozen pending a determination of need. Over the past year duties and tasks have been absorbed by other employees, however it has become clear that a dedicated staff person needs to be assigned the specific activities. Staff recommends this position be unfrozen and filled. Classification Planhh If the Board recommends a COLA adjustment, staff will return with a revised Classification Plan in the Final Budget that reflects the Board direction. 5. Reserve Fund The Authority has four Reserve fund accounts, the Undesignated Operating Reserve, the Rate Stabilization, Personnel Stabilization, and Capital Improvement Project Fund Reserves. Authority Reserve Funds Undesignated Operating Reserve HWMA Policy established an undesignated reserve policy goal to maintain a reserve fund equal to 15% of annual projected operating expenses. This policy was established to ensure fund availability for 1) contingencies for unseen or capital needs; 2) economic uncertainties; and/or 3) cash flow requirements. Based on projected FY 2019/20 Operational Expenses, a 15% target reserve is $1,142,256. (Line 156) 5

10 Page 10 of 24 Rate Stabilization Reserve The fund maintains a base allocation of $400,000 for Fiscal Year , to be available for use to offset unexpected fuel spike increases or other unexpected costs increases in contracted services related to recycling, green waste, household hazardous waste, solid waste disposal services or State mandated pass through fees. (Line 158) Capital Improvement Reserve Fund Funds available for Fiscal Year will be used solely for the application of the approved Capital Improvement Plan (CIP). CIPs are used to detail operational renovations or improvements greater than $25,000 expected within a 5-year planning horizon, plan for necessary financing of equipment and materials, and identify project implementation timelines for completion. The fund is anticipated to decrease by $94,066 to reflect completion of projects and better exemplify future needs as currently planned, and to assist in maintaining a balanced budget by offsetting additional costs in other activities. (Line 159) Personnel Stabilization Reserve In addition to the market medical health insurance, HWMA self-funds and manages employee dental and vision benefits, which is budgeted annually. Depending upon individual needs, employees may or may not draw upon these budgeted funds. Establishment of this reserve fund allows for hourly staff wages to be budgeted at full encumbrance without unduly affecting Waste Management Fees. The fund maintains a base allocation of $150,000 for Fiscal Year , which may be used in the event of unusual drawdowns for self-funded benefits, and assist the Authority in meeting necessary salary adjustments related to the new minimum wage tier by directing net income into this line item. (Line 157) 6. Other Board Directives for Budget Finalization Additionally, staff will be seeking Board direction of the following items to complete the final budget for consideration at the May meeting: a) Capital Improvement Expenditures Proposed Capital Improvement Expenditures for FY include costs associated, equipment and implementation of projects identified in the approved FY Capital Improvement Plan which include: 70 Pit Scale Replacement- The existing scale was installed in 2005 and necessary for accurate axel and total weight tonnages of out bound waste trailers. Continue lease payments on new heavy equipment in operation on the Hawthorne Street Transfer Station Tip Floor. Funds for upcoming transportation vehicle replacement anticipated to occur in Fiscal Year Funds to replace and upgrade the aging Transfer Station Scale House Implementation of the approved Stormwater Treatment System 6

11 Page 11 of 24 The total projected cost of the first four projects listed $210,620 is anticipated to be fully funded by the Capital Improvement Reserve Fund, per the approved Capital Improvement Plan established by the Board in October (Line 157) Funding for the approved Stormwater Treatment System is proposed to be drawn from the Undesignated Reserve; mid-year budget review will provide further recommendations to the Board on how to replenish these costs and return the funds to the Undesignated Reserve. b) Recycling Marketing Development Zone funding allocation totaling $10,000 is included for discussion. Funding will be directed to the Humboldt County Economic Development Division to assist in supporting activities related to the North Coast Recycling Market Development Zone. The County will also receive approximately $3,500 in FY funding from CalRecycle to support ZIF and ZoneWorks activities. (Line 52) f) Other direction or requests identified by the Board. ATTACHMENTS: A) Draft FY Budget Summary B) Draft FY Waste Management Fees C) Draft FY County Wide Program Fees D) County Wide Programs Fee Program Overview and Proposed Funding Details E) Draft FY AB 939 Allocation 7

12 Page 12 of 24

13 Page 13 of 24 Humboldt Waste Management Authority Fiscal Year Draft Budget Administration Programs Tip Floor Operations Recycling Operations Environmental Health & Safety Cummings Road Landfill FY18-19 % Change Total FY FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget Final Budget from FY18-19 Budget 1 Revenues 1 2 Revenues from Operations 2 3 Franchise Tip Fees $5,547,248 $5,031,390 $5,547, % $5,031, Self Haul Tip Fees $2,337,236 $3,116,400 $2,337, % $3,116, Satellite Tip Fees $443,546 $1,084,270 $443, % $1,084, Out of Area Self Haul Fees $221,073 $116,350 $221, % $116, Revenues from Solid Waste $0 $0 $0 $0 $8,549,102 $9,348,410 $0 $0 $0 $0 $0 $0 $8,549, % $9,348, Greenwaste Tip Fees 8 9 Franchise $186,700 $247,260 $186, % $247, Self Haul $180,000 $180,000 $180, % $180, Diversion Revenue Hazardous Waste $65,000 $65,000 $65, % $65, Single-Stream Processing and Loading $150,000 $150,000 $150, % $150, Self Haul (Appliances, TVs, Tires, Misc. E-waste) $0 $0 $9,000 $9,000 $60,000 $60,000 $69, % $69, Salvage Revenue from Sale of Materials Processed In-House $21,000 $21,000 $1,400,000 $1,537,000 $1,421, % $1,558, Revenues from Material Diversion Programs $0 $0 $0 $0 $396,700 $457,260 $1,610,000 $1,747,000 $65,000 $65,000 $0 $0 $2,071, % $2,269, Total Revenues from Operations $0 $0 $0 $0 $8,945,802 $9,805,670 $1,610,000 $1,747,000 $65,000 $65,000 $0 $0 $10,620, % $11,617, Revenue Generated by Program Fees and Base Rate County-Wide Program Fees Administrative $51,624 $86,250 $51, % $86, Hazardous Waste $484,912 $439,835 $484, % $439, Cummings Road Landfill Pledge of Revenue $319,680 $353,250 $319, % $353, Programs $87,581 $87,581 $87, % $87, Base Fees Administrative $313,429 $437,277 $313, % $437, Cummings Road Landfill Operations $343,325 $421,529 $343, % $421, Environmental Health and Safety $135,396 $135, Universal Waste Programs $119,952 $124,924 $119, % $124, Recycling Programs $649,854 $685,747 $649, % $685, Total Revenue Generated by Program Fees and Base Rate $365,053 $523,527 $207,534 $212,505 $0 $0 $649,854 $685,747 $484,912 $575,231 $663,005 $774,779 $2,370, % $2,771, Other Revenues Timber Harvest, CRLF Forest Property $269,000 $0 $269, Rental Income, Net of Expenses $124,620 $124,620 $124, % $124, Total Other Revenues $0 $0 $0 $0 $124,620 $124,620 $0 $0 $0 $0 $269,000 $0 $393, % $124, Total Revenues $365,053 $523,527 $207,534 $212,505 $9,070,422 $9,930,290 $2,259,854 $2,432,747 $549,912 $640,231 $932,005 $774,779 $13,384, % $14,514,

14 Page 14 of 24

15 Page 15 of 24 Humboldt Waste Management Authority Fiscal Year Draft Budget Administration Programs Tip Floor Operations Recycling Operations Environmental Health & Safety Cummings Road Landfill FY18-19 % Change Total FY FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget Final Budget from FY18-19 Budget 40 Expenses Operating Expenses Solid Waste Hauling & Disposal Hawthorne Street TS $3,026,893 $3,110,206 $3,026, % $3,110, McKinleyville Satellite $23,510 $285,181 $23, % $285, Fortuna Satellite $224,129 $282,712 $224, % $282, Diverted Materials Hauling & Disposal Greenwaste $370,248 $410,273 $370, % $410, Hazadous Waste $270,000 $270,000 $270, % $270, Appliances, TVs, Tires, Misc. E-waste $12,000 $12,000 $100,000 $100,000 $112, % $112, Leachate $100,000 $100,000 $100, % $100, CRV Paid Out $1,370,000 $1,500,000 $1,370, % $1,500, Contract Services RMDZ $10,000 $10,000 $10, % $10, Temporary Employment Services Total Operating Expenses $0 $0 $10,000 $10,000 $3,656,781 $4,100,371 $1,470,000 $1,600,000 $270,000 $270,000 $100,000 $100,000 $5,506, % $6,080, Payroll Expenses Employee Wages $138,736 $144,208 $108,854 $99,566 $682,026 $706,767 $414,065 $429,757 $127,036 $176,959 $130,274 $134,531 $1,600, % $1,691, SUI $1,722 $1,260 $574 $420 $4,018 $2,940 $2,870 $2,100 $574 $630 $574 $420 $10, % $7, Medicare $2,374 $2,454 $1,941 $1,806 $10,252 $10,611 $6,366 $6,594 $2,205 $2,928 $2,251 $2,313 $25, % $26, Workers Compensation $3,481 $2,560 $934 $592 $70,858 $51,484 $53,660 $39,121 $12,085 $12,980 $15,301 $11,020 $156, % $117, CalPERS $25,052 $26,143 $20,480 $19,246 $108,175 $113,058 $67,177 $70,260 $23,261 $31,203 $23,757 $24,648 $267, % $284, Health Insurance $47,388 $47,388 $23,208 $23,532 $174,060 $174,060 $116,040 $116,040 $34,812 $46,092 $22,884 $22,884 $418, % $429, Total Payroll Expenses $218,753 $224,012 $155,991 $145,162 $1,049,389 $1,058,920 $660,179 $663,872 $199,973 $270,792 $195,042 $195,816 $2,479, % $2,558, Program Fees and Base Rate Passed-Through to Member Agencies, Authority Programs County-Wide Program Fees Administration $51,624 $86,250 $51, % $86, Hazardous Waste $484,912 $439,835 $484, % $439, Landfill Closure and Post-Closure Maintenance Pledge of Revenue $319,680 $353,250 $319, % $353, AB939 $154,001 $154,001 $154, % $154, County LEA $225,360 $234,750 $225, % $234, County Rural Container Program $346,320 $360,750 $346, % $360, County Table Bluff Landfill Maintenance $53,280 $55,500 $53, % $55, Illegal Dumping and Cleanup Funds $40,320 $42,000 $40, % $42, Base Fees Administrative $313,429 $437,277 $313, % $437, Environmental Health and Safety $135,396 $135, Cummings Road Landfill Operations $343,325 $421,529 $343, % $421, Universal Waste Programs $119,952 $124,924 $119, % $124, Recycling Programs $649,854 $685,747 $649, % $685, Total Program Fees and Base Rates Passed Through $0 $0 $0 $0 $3,102,057 $3,531,210 $0 $0 $0 $0 $0 $0 $3,102, % $3,531,

16 Page 16 of 24

17 Page 17 of 24 Humboldt Waste Management Authority Fiscal Year Draft Budget Administration Programs Tip Floor Operations Recycling Operations Environmental Health & Safety Cummings Road Landfill FY18-19 % Change Total FY FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget Final Budget from FY18-19 Budget 84 Indirect Expenses Accounting Expense $19,135 $19,250 $19, % $19, Advertising Expense $1,500 $16,500 $7,000 $2,000 $1,000 $1,000 $3,000 $3,000 $17,500 $17,500 $30, % $40, Alarm/Security Expense $250 $250 $250 $250 $250 $250 $250 $250 $1, % $1, Bank Fees Expense $25,000 $30,000 $0 $0 $25, % $30, Dues/Membership $3,500 $5,000 $3,000 $3,000 $500 $500 $7, % $8, Engineering & Consulting $20,000 $145,000 $23,000 $30,000 $80,000 $48,000 $100, % $246, Timber Management Expenses $83,000 $17,000 $83, % $17, Environmental Monitoring $5,000 $5,000 $75,000 $97,000 $80, % $102, CRBAS Five-Year Monitoring $10,000 $10,000 $10, % $10, Gas/Fuel Expense $500 $35,000 $70,000 $2,500 $1,500 $2,500 $2,500 $1,600 $1,600 $42, % $75, Insurance Expenses Environmental $10,300 $10,300 $10, % $10, General Liability $4,284 $4,284 $4,218 $4,218 $24,544 $24,544 $5,533 $5,533 $4,903 $4,903 $3,456 $3,456 $46, % $46, Property $381 $381 $375 $375 $3,059 $3,059 $492 $492 $436 $436 $307 $307 $5, % $5, Janitorial/Vector Services $1,000 $1,000 $1,000 $1,000 $8,000 $8,000 $3,000 $3,000 $350 $350 $150 $150 $13, % $13, Legal Expense $40,000 $40,000 $40, % $40, Property & Equipment Leases $10,000 $10,000 $122,350 $153,000 $132, % $163, Meeting Expense $1,000 $1,000 $1, % $1, Employment Expenses (Hiring, Testing, etc.) $5,000 $5,000 $5, % $5, Office Supplies $9,150 $9,500 $500 $500 $3,000 $3,000 $2,000 $2,000 $750 $750 $600 $600 $16, % $16, Operating Supplies $9,000 $12,500 $30,000 $52,000 $15,000 $15,000 $4,000 $4,000 $58, % $83, Outside Printing $1,000 $2,000 $1,000 $1,000 $500 $7,000 $500 $4,500 $500 $500 $250 $250 $3, % $15, Permits & Fees $10,300 $10,300 $2,600 $2,600 $70,000 $77,000 $82, % $89, Postage $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $500 $1,000 $1,000 $5, % $5, Publications $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $1, % $1, Repairs & Maintenance Expenses Facilities $400 $400 $500 $500 $35,000 $76,100 $12,000 $16,900 $3,000 $3,000 $15,000 $15,000 $65, % $111, Equipment $400 $400 $250 $250 $60,000 $64,650 $30,000 $42,000 $2,000 $2,000 $16,000 $20,000 $108, % $129, Vehicles $1,000 $1,000 $2,000 $2,000 $1,000 $1,000 $4, % $4, Safety Expense $500 $1,000 $8,000 $5,000 $3,000 $22,500 $3,000 $3,000 $20, % $25, Small Tools $4,200 $8,280 $3,700 $6,000 $500 $500 $500 $500 $8, % $15, Software Expense $21,000 $24,000 $9,000 $9,000 $8,000 $8,000 $5,000 $5,000 $4,200 $4,200 $7,000 $7,000 $54, % $57, Telephone Expense $2,000 $6,000 $1,500 $1,500 $5,000 $5,000 $1,500 $1,500 $1,000 $1,000 $1,500 $1,500 $12, % $16, Training $4,000 $6,000 $4,000 $4,000 $3,500 $3,500 $4,000 $4,000 $3,000 $3,000 $18, % $20, Travel - Transportation, Meals, Lodging, Mileage $1,500 $2,000 $1,500 $1,700 $3,500 $3,650 $3,800 $4,300 $2,000 $2,250 $12, % $13, Mileage Reimbursement $400 $200 $150 $500 $250 $1, Uniforms Expense $500 $750 $1,500 $500 $7,000 $7,000 $5,000 $5,000 $1,000 $1,000 $1,000 $1,000 $16, % $15, Utilities Expense Electricity/Heat $1,600 $3,000 $1,900 $2,000 $16,000 $16,000 $18,000 $18,000 $3,000 $3,000 $30,000 $30,000 $70, % $72, Water $1,600 $1,600 $1,400 $1,600 $1,500 $1,500 $1,500 $1,500 $1,200 $1,200 $800 $800 $8, % $8, Total Indirect Expenses $146,300 $299,515 $41,543 $57,343 $401,053 $553,533 $129,675 $168,875 $79,939 $99,439 $420,963 $355,963 $1,219, % $1,534, Capital Expenditures Reserve Fund Requirements $4,527 -$367,781 $4, % -$367, Asset Improvements, Non-CIP $200,000 $30,000 $123,000 $30, % $323, Long-Term Principal $804,703 $815,690 $804, % $815, Long-Term Interest $51,912 $38,347 $51, % $38, Total Capital Expenditures $0 $0 $0 $0 $861,142 $686,255 $0 $0 $0 $0 $30,000 $123,000 $891, % $809, Total Expenses $365,053 $523,527 $207,534 $212,505 $9,070,422 $9,930,290 $2,259,854 $2,432,747 $549,912 $640,231 $746,005 $774,779 $13,198, % $14,514, Net Income (Loss) $0 $ $ % $0 135

18 Page 18 of 24

19 Page 19 of 24 Humboldt Waste Management Authority Fiscal Year Draft Budget Administration Programs Tip Floor Operations Recycling Operations Environmental Health & Safety Cummings Road Landfill FY18-19 % Change Total FY FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget FY18-19 Budget Proposed Budget Final Budget from FY18-19 Budget 136 Grant Activities Waste Tire $70,000 $70,000 $70, % $70, RMDZ OPP $47,490 $47,490 $47, % $47, HHW HD $50,000 $50,000 $50, % $50, DoC $23,000 $23,000 $23, % $23, Revenues from Grant Programs $0 $0 $140,490 $140,490 $0 $0 $0 $0 $50,000 $50,000 $0 $0 $190, % $190, Waste Tire Grant $70,000 $70,000 $70, % $70, RMDZ Oil Payment Program $47,490 $47,490 $47, % $47, HHW HD Grant $50,000 $50,000 $50, % $50, CCPP Grants $23,000 $23,000 $23, % $23, Expenses Incurred by Grant Programs $0 $0 $140,490 $140,490 $0 $0 $0 $0 $50,000 $50,000 $0 $0 $190, % $190, Total Grant Activities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Non-Cash Activities Affecting Net Income Depreciation Expense $82,739 $82,739 $1,307 $1,307 $265,609 $265,609 $35,616 $35,616 $30,062 $30,062 $5,225 $5,225 $420, % $420, Total Non-Cash Activities $82,739 $82,739 $1,307 $1,307 $265,609 $265,609 $35,616 $35,616 $30,062 $30,062 $5,225 $5,225 $420, % $420, Reserves and Trusts Operating Reserve: 15% of Operating Expenses $32,813 $44,927 $24,899 $10,101 $705,925 $698,086 $319,527 $265,331 $70,496 $55,416 $44,256 $68,394 $1,197, % $1,142, Personnel Stabilization Reserve $150,000 $150,000 $150, % $150, Rate Stabilization Reserve $400,000 $400,000 $400, % $400, Capital Improvement Fund $787,480 $649,609 $65,000 $852, % $649, Current Cash Value of Designated Reserves $2,407,349 $2,709,646 $0 $0 $186,000 $0 $2,593, % $2,709, Total Required Budget Funding for Reserves -$367, Total Reserves and Trust Funds $2,341,

20 Page 20 of 24

21 Attachment B Fiscal Year Waste Management Fees Page 21 of 24 HWMA HWMA RER HumSan Out of Area Total Self Haul Franchise Franchise Franchise Self Haul Disposal Tonnage Generated 20,000 39,000 5,000 6,000 5,000 75,000 Countywide Program Fees Administration $1.40 $1.40 $1.40 $1.40 $1.40 $105, Household Hazardous Waste Program $5.86 $5.86 $5.86 $5.86 $5.86 $439, Cummings Road Landfill Maintenance $4.71 $4.71 $4.71 $4.71 $4.71 $353, Cleanup/Enforcement Programs $0.56 $0.56 $0.56 $0.56 $0.56 $42, Rural Container Program $4.81 $4.81 $4.81 $4.81 $4.81 $360, County/Cities AB939 Programs $2.05 $2.05 $2.05 $2.05 $2.05 $154, Table Bluff Landfill Maintenance $0.74 $0.74 $0.74 $0.74 $0.74 $55, Countywide Enforcement (LEA) $3.13 $3.13 $3.13 $3.13 $3.13 $234, Subtotal $23.27 $23.27 $23.27 $23.27 $23.27 $ 1,745, HWMA Base Fees Administration $5.98 $5.98 $5.98 $5.98 $418, Environmental Health and Safety $1.93 $1.93 $1.93 $1.93 $135, Universal Waste Programs $1.78 $1.78 $1.78 $1.78 $124, Recycling Programs $9.80 $9.80 $9.80 $9.80 $685, Cummings Road Landfill Operations $6.02 $6.02 $6.02 $6.02 $421, Subtotal $25.52 $25.52 $25.52 $25.52 $ 1,786, Facility Fees Operations (Transportation & Disposal) $83.16 $56.35 $49.79 $49.79 $4,408, Indirect $12.24 $12.24 $722, Capital Expenditures $11.63 $11.63 * * $686, Subtotal $ $80.23 $49.79 $49.79 $ 5,817, Total Proposed Waste Mgmt. Fees $ $ $98.57 $98.57 $23.27 Waste Mgmt. Fees for Prior Fiscal Year $ $ $98.57 $98.57 $23.27 Percent Increase (Decrease) 0.00% 0.00% 0.00% 0.00% 0.00% * Values for HWMA Facility Fees related to Satellite Facilities relate to transportation and disposal costs only. Other fees for facility operation are set via agreement by Member Agencies with their respective facility operators.

22 Page 22 of 24 Attachment C Fiscal Year County Wide Program Fees Per Ton (Revenue) HWMA HWMA Satellite Out of Area Self Haul Franchise Franchise Self Haul Anticipated Waste Disposed 75,000 20,000 39,000 11,000 5,000 (tons/year) HWMA Operated FY FY Change Total Administration $0.72 $1.40 $0.68 $105,000 Household Hazardous Waste Program $6.73 $5.86 ($0.87) $439,835 Cummings Landfill Road Maintenance $4.44 $4.71 $0.27 $353,250 Cleanup/Enforcement Programs $0.56 $0.56 $0.00 $42,000 Pass Through Rural Container Program $4.81 $4.81 $0.00 $360,750 County/Cities AB939 Programs $2.14 $2.05 ($0.09) $154,001 Table Bluff Landfill Maintenance $0.74 $0.74 $0.00 $55,500 Countywide Enforcement (LEA) $3.13 $3.13 $0.00 $234,750 Subtotal $23.27 $23.27 ($0.01) $1,745,086

23 Page 23 of 24 Attachment D Draft Fiscal Year County Wide Program Fees Program Overview and Proposed Funding Details Administration This revenue covers HWMA s administrative salaries and overhead, legal services and Board expenses. Projected revenue is approximately $86,250. The Household Hazardous Waste Program diverts household hazardous waste (i.e. oil, pesticides, pharmaceutical etc.) for materials not permitted to be disposed in landfills. A portion of these expenses have been reallocated to be covered by a new Environmental Health and Safety Base Fee. Projected revenue is approximately $458,578. Cummings Road Landfill Maintenance provides necessary funding to cover the expenses associated with non-closure related expenses of the landfill. When final closure of the landfill is complete, funds will be directed towards post-closure related maintenance expenses. Projected revenue is approximately $353,250. Cleanup and Enforcement Programs provides funding for cleanup of illegally dumped waste from member agencies. Projected revenue is $42,000. The Rural Container Program the County is responsible for administering contracts for operation of 12 outlying container drop-off sites in the unincorporated, rural areas of Humboldt County. Because the operations are small and remote, actual costs to staff the facility and haul disposed materials does incur higher cost per ton. If the site operators charged the actual cost in their gate tip fee, few individuals would use the sites and illegal dumping in the surrounding area would likely increase. Projected revenue is $360,750. This is passed directly to Humboldt County Public Works. County/Cities AB939 Programs This assists in funding waste diversion activities, programs and staffing in HWMA s member cities and the County. At the discretion of the member agency, funds may be used to cover the costs of recycling and other waste diversion programs with the intent that the agencies can comply with AB939 s waste reduction mandate. Projected revenue is $154,001. This is distributed to all member agencies according to an allocation formula previous established by the Board. Table Bluff Landfill is a closed landfill owned by the County of Humboldt and located south of Eureka. The County is responsible for closure related maintenance and activities. Projected revenue is $55,500. This is passed directly to Humboldt County Public Works. The Local Enforcement Agency (LEA) provides local enforcement activity on behalf of CalRecycle s (formerly known as the California Integrated Waste management Board) regulation. Project revenue is $234,750. This is passed directly to County Environmental Health.

24 Page 24 of 24 Attachment E Fiscal Year AB939 Payment Allocation Proposed Payment Schedule FY Entity Total Due Retained by HWMA Quarterly Payment Ratio Arcata 22, , % Blue Lake 7, , % Eureka 35, , , % Ferndale 7, , % Rio Dell 8, , , % Unincorporated Areas 72, , , % HWMA % 154, , , % History of Payments to Members Entity FY FY FY FY FY FY FY Arcata 21, , , , , , , Blue Lake 6, , , , , , , Eureka 33, , , , , , , Ferndale 6, , , , , , , Rio Dell 8, , , , , , , Trinidad 5, , , Unincorporated Areas 72, , , , , , , (retained by HWMA) Retained by HWMA 15, , , , , , , , , , , , , ,440.00